Computation the NRV of accounts receivables.
a. An analysis and aging of accounts receivable of the Lucille Company at December 31, 2007, showed the following:
Accounts receivable $840,000
Allowance for Doubtful Accounts
(Before adjustment) 36,000(Cr)
Accounts estimated to be uncollectible 76,800
Compute the net realizable value of the accounts receivable of Lucille Company at December 31, 2007.
b. Grant Company accepted a $400,000 face value, 6-month, 10 percent note dated May 15 from a customer. On that same date, grant discounted the note at eagle national Bank at a 12 percent discount rate. How much cash should Grant receive from the bank on May 15?